From today’s Washington Post:
The Consumer Financial Protection Bureau announced Thursday that it has finalized new rules limiting the fees that banks can charge when customers overdraw their accounts.
In a statement, CFPB director Rohit Chopra called overdraft fees a “legal loophole” that have drained billions of dollars from Americans’ bank accounts.
“The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they’re charging on overdraft loans,” Chopra said.
Under Chopra’s leadership during the Biden administration, the CFPB has taken a number of aggressive actions to curb practices such as data harvesting and the use of medical debt in credit reports, and going after financial institutions for what they call “junk fees.”
The move comes less than two months before President-elect Donald Trump is scheduled to take office, a change in administration that could bring sweeping changes to consumer protection policy. Trump and congressional Republicans are already weighing substantial changes to the agency.
Read the complete story here.